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Smartmatic Group Report 




1 1 






Chairman s Foreword 2 

Smartmatic Company Overview 3 


Smartmatic Business Overview 5 


Smartmatic Product Overview 7 


Smartmatic Structure Overview 10 





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A word from our CEO 

Antonio Mugica 

CEO, Smartmatic 

"Since its foundation, Smartmatic has developed technology 

to help societies become more efficient and transparent" 

Some years ago when we started this business, we were confident that it would grow into a significant operation 
transcending frontiers and reaching large proportions. Today I am proud to say we are a leading global provider of 
state-of-the art voting products and services and of other novel technology solutions as well. 

Our current three technology solutions contribute to the progress of communities and facilitate the long roads 
governments have to walk to become effective. Our SAES family of products seeks to strengthen democracy around 
the globe. USP seeks to increase public safety and emergency management. SIMS is designed to register and 
authenticate personal biographic and biometric data efficiently and reliably, eliminating identity fraud and the blights 
it creates on society. 

I look forward to implement our ambitious strategies over the coming years, and to develop wider opportunities for 
our technology and services. 



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I. Smartmatic Company Overview 

We are one of the fastest growing high tech companies in the world 

1. 1 Company Highlights 

Smartmatic is a privately-owned, multinational company that designs and deploys end-to-end, custom technology 
solutions to enable government agencies and large enterprises to fulfill their missions with the utmost efficiency. It is 
one of the largest cutting-edge technology suppliers, with a wide and proven experience in the United States, Latin 
America, Asia and the Caribbean. 

Smartmatic aims to help societies become more efficient and transparent, through technological innovations and is 
responsible for several advanced and leading edge innovations incorporated in its three business areas: electronic 
auditable voting systems, intelligent and integrated safety platforms, and advanced solutions for people registration, 
authentication and census to support a wide range of government requirements. 

The company has more than 300 professionals distributed in offices in United States, Barbados, Venezuela, Spain, 
Philippines and Taiwan. 

Since its inception, Smartmatic has demonstrated a commitment to excellence in engineering and a passion to create 
new efficient solutions. This distinguishing quality of passion is at the core of Smartmatic's drive to improve our 
world. Smartmatic's vision: We imagine technology with profound social impact raising our civilization. 

1 .2 LGQQl Sf fUCtUTG As a leading global provider of voting products and services, and technology solutions, Smartmatic has an interna- 
tional ownership structure comparable to other multinationals. The Smartmatic Group is a Netherlands/Netherlands 
Antilles Corporation which owns several subsidiaries located in United States, Netherlands, Venezuela, Ecuador and 

1 .3 Brief HiStOry 2004 After a technical review, our Smartmatic Auditable Election System (SAES) technology is purchased by the 

Venezuelan electoral board. The voting receipt is used for the first time in a nationwide election. 

2005 We reached 26 million votes in four elections and our technology is validated by different organizations such as 
the Carter Center, the QAS and the European Union. 

2006 Smartmatic technology is used in the United States through Sequoia Voting Systems, a leading electronic voting 
system company in the United States. Between 2005 and 2006, Smartmatic generated $400 million of revenues, 
increasing its market share from 8% to 28%. 

2006 We reached 40 million votes with their corresponding voting receipts and for the first time in a Venezuelan 
automated election, both parties validate the results the same Election Day. 

2007 Organized and executed elections in Curacao in record time. 

2007 Opening of the Metropolitan Caracas Mayoralty Command and Control Center (Venezuela) which uses Smartmatic 
technology (USP - Public Safety). 

2007 The Constitutional Reform Referendum is carried out using Smartmatic technology. 

2008 SAES takes part in the first fully automated elections in the Philippines, specifically in the Autonomous Region in 
Muslim Mindanao. 

2008 The Venezuelan Regional Election is carried out using Smartmatic technology for the seventh consecutive time in Venezuela. 

2009 The Constitutional Reform Referendum is carried out in Venezuela using 100% Smartmatic technology in all 
voting centers. 



1 .4 Corporote SOCIO! Responsibility Smartmatic is a global company contributing to sustainable development through innovation and high value added 

A major business goal of Smartmatic is to create value by exercising social responsibility; it is entirely consistent that 
we have a strong community focus. The fundamental motivation of our three technology solutions is the advance- 
ment /development desire for the communities we serve. SAES seeks to strengthen democracy around the globe, by 
providing and auditable, reliable and efficient voting solution. USP aims to diminish the effects of criminality and to 
preserve life in the event of emergencies, and SIMS is conceived to eliminate identity fraud and the blights on society 
it creates. We derive our success from exercising our social responsibility in the most innovative and constructive 
way passible. 

Smartmatic's commitment to the community extends beyond the positive impact of our technology solutions. We 
support a variety of social causes and cultural enrichment programs. 

Education is an important target within our community support efforts. The most visible of our community programs 
is CONNECT, a programming marathon we organize annually since 2006 in collaboration with several universities. In 
this intense competition, students vie for prizes and prestige producing effective code to solve a particular problem in 
a high-pressure situation that simulates a real life programming assignment. 

These are some of the ways Smartmatic works to benefit the engineering profession and the broader community of 
which we are a responsible part. 

1 .5 What we believe Integrity 

We are committed to honesty and truth in every aspect of our life, trying to be an example of respect and trust. 


We speak our minds to make other understand our objectives and we always ask for feedback in order to improve ourselves. 


We do not give up while pursuing our goals. We value company's achievements as our own. 


We challenge the status quo with unique ideas for continuous improvement. 


We follow the higher standards of quality when delivering our work, and we execute our tasks with diligence. 


We understand our goals and translate them into results. 


We share information openly and promote a sense of belonging to the company to achieve our goals. 



II. Smartmatic Business Overview 

2.1 Business Concept 

Smartmatic designs and deploys technological solutions aimed at helping governments/large enterprises fulfill, in the 
most efficient way, their commitments with their citizens/clients. 

Our mission is to help societies become more efficient and transparent, through technological innovations 

2.2 DUSineSS Model Smartmatic uses a partner-driven business model. Based on its technology systems, the company works through its 
subsidiaries and local companies with a global network of partners for creating the most customized products and 

Smartmatic has more than 300 professionals distributed in offices in The United States, Barbados, Venezuela, Spain, 
Philippines and Taiwan. 

2.3 DUSineSS UnitS Smartmatic is organized along three main business units: 

Electronic voting systems: Smartmatic Auditable Election System (SAESj 

Intelligent and integrated security systems for large enterprises and governments: Unified Security Plaform (USP) 
Advanced solutions for people registration, authentication and census: Smartmatic Identity Management 
Solutions (SIMS) 

Over the years Smartmatic has developed a comprehensive insight into each of these businesses, as well as R&D and 
technology consulting and, it has crafted solid relationships with its customers worldwide. 

2.4 Recent Business History 

Since August 2004, Smartmatic has successfully organized and performed multiple national and regional elections 
using an auditable voting solution with a voter-verified paper audit trail in Latin America (eight nationwide electoral 
events in Venezuela alone}, one in the Caribbean and hundreds in the United States (through Sequoia Voting Systems, 
company divested in November 2007, that remains our current partner to distribute Smartmatic's election technology 
in the US market). In this period Smartmatic has tabulated 1 50 million votes, each with a voter verified paper audit 
trail, hundreds of audits, more than 45,000 voting machines installed in more than 1 1 ,000 polling centers at once are 
some of the statistics that distinguish Smartmatic in its election management skills. 

International organizations such as the 0AS (Organization of American States), the Carter Center and European 
Union's Observer Missions have examined Smartmatic's electoral technology several times, and some of their final 
comments about SAES's performance include: "The automated voting system implemented in Venezuela [SAES] is the 
most advanced in the world" (EU Electoral Observers Mission Final Report 2006); "The electronic voting system 
implemented in Venezuela [SAES] is effective, secure and auditable, backed by a technical team matching its 
advanced technological level" (Monica Frassoni, EU Mission 2006); "This voting system is designed in such a way 
that it is not possible to manipulate final results" (Cesar Gaviria, 0AS Secretary General, 1 994 - 2004). 


During 2007, the SIMS business unit managed a voter authentication project. This project consisted in the collection 
and processing of fingerprints in order to build a data base of voters able to carry out referendums against elected 
officials. An automated Biometric Capture System was used to preserve and guarantee the identity of the signatories 
preserving the integrity of the process. Smartmatic coordinated the automated voter authentication system. In 
support of an impeachment process for 1 67 elected officials contemplated in the Venezuelan constitution, 
Smartmatic deployed 1 ,570 voting centers, 3,664 reception points, 3,664 biometric equipments, more than 3,500 
machine operators, 5,400 data reception employees and about 800 technical personnel. Smartmatic organized and 
distributed the necessary equipment composed of laptops, fingerprint biometric identification devices and the 
registers of voters. The event lasted 3 days and more than 1 2 million voters were registered. 

Smartmatic's USF system is currently installed in bank offices and branches in Mexico. Additionally in Caracas, 
Venezuela, the Metropolitan Mayor launched a multimillion-dollar public safety and health system designed and built 
by Smartmatic. The project was conceived to process emergency calls in a 'Command and Control Center' for 
Caracas, a city of more than 6,000,000 inhabitants, based on a robust technological platform. 

Smartmatic was awarded the contract to supply the SAES automated election system to the province of Maguin- 
danao, one of the six provinces of the Autonomous Region in Muslim Mindanao (ARMM) in the Philippines. 
Smartmatic provided its technology to the Mindanao province, and oversaw and facilitated the correct and complete 
execution of the project for the entire six-province ARMM. In general terms, the project included deploying some 
3,050 SAES voting machines and accessories, 274 servers for vote processing and central tally consolidation and 
reporting; and more than 600 field operators, help desks for contingencies in voting centers, and election manage- 
ment through the guidance of highly qualified personnel, having ample experience in similar projects. 

2.5 Research and Development 

The innovative impulse, the passion to create faster, stronger, better solutions that advance society in significant 
ways - These are the forces driving Smartmatic's R&D and Consulting teams. 

They are the world-class professionals who work at expanding the realm of what's possible. They form the teams 
that continuously scour the technology landscape in search of the frameworks, methodologies and processes that 
spark a brilliant new, large-scale, real life application. 

An outstanding example of this is the introduction of a state of the art solution for the most vital part of the 
democratic process - the vote. Born of a client's need for expert help to overcome a major challenge and delivered by 
the insight and inspiration of the R&D and Consulting teams, this application has become the most auditable voting 
technology ever created. As such it has earned the respect of independent electoral observers, international election 
authorities and political parties on both sides during some of the toughest, most disputed elections. 

This award-winning innovation, like all of our solutions, comes from our conviction that consulting is not an exercise 
in adapting an existing product for different customers. Rather, we create custom solutions specifically for each 
client's individual needs by working alongside them to share the experience of bringing complex solutions to life. For 
us the product development cycle does not stop with deployment on site. We consider it complete only when our 
client begins to reap the benefits of our combined efforts. 

2.6 Worldwide Presence 

Smartmatic has a Global Footprint reaching all corners where we can add value to the objective of governments 
around the world. In the last seven years of operations Smartmatic has: 

Supported the casting of 1 50 million votes; 

Installed over 300,000 palling stations 

Executed projects in 8 countries 

Active marketing in over 30 countries 



III. Smartmatic Product Overview 

Smartmatic is responsible for several advanced innovations. The products from Smartmatic Identity Management 
Solutions (SIMS) guarantee top security in collecting and using people's biographic and biometric information. 
Smartmatic Auditable Election System fSAES) automates and unifies the voting procedure, the tabulation process, 
seat allocation and the results. The Unified Security Platform [\]$V) strengthens the government capacity to respond 
fast and effectively to citizens' safety and health incidents. All technologies guarantee the necessary security and 
reliability in complex solutions such as biometric registration of people, elections or public safety programs. 

3.1 SAES 
Smartmatic Auditable Election System 

SAES is the most reliable and auditable automated voting system in the industry. Each SAES machine has a printer 
capable of issuing reports and voting receipts which help electors, verify if their vote was registered correctly. 
Besides voting becomes an easy task for handicapped people through different functions and special features. SAES 
has been validated by renowned international organizations such as the Carter Center, the Organization of American 
States (DAS) and the European Union. 

The SAES platform includes different security mechanisms. Some of these features include the generation of a public 
key infrastructure (PIG) using strong 2048-bit digital certificates that identify each and every entity within the SAES 
infrastructure, this key is unique per electoral process. 

Main products: SAES3000; SAES3300; SAES4000; SAES2800; SAES1800; SAES888; Electronic ballot; Electoral 
Management System (EMS); Election Day Management Platform (EDMP). 



3.2 USP 
Unified Security Platform 

USP (Unified Security Platform) is a comprehensive answer to the serious challenge of ensuring public safety, 
effectively and economically. This flexible and scalable platform, designed to menage, configure, automate, and 
monitor safety devices across wide geographical areas, can be completely customized to specific needs. Consistently 
effective from first alert to mission accomplished USP contains all the capabilities necessary to implement successful 
public safety programs and mobilize rapid response for optimum results. Its rich feature set and ease of use facilitates 
mission critical coordination of all parties involved in emergency response and disaster management. 

USP allows heterogenic interconnection of different devices, unifying for the first time in the most efficient way all 
security modules: emergency call aid, dispatch of mobile units, CCTV and telemetry, backed-up by statistics and data 

Main Components: Communications, control and command center; USPSmartCAD emergency handling and 
dispatchment; Vehicular Tracking; Closed Circuit Television (CCTV); Telemetry. Critical Areas Monitoring. 



3.3 SIMS 

Smartmatic Identity 
Management Solutions 

SIMS offers a portfolio of products and services to support government institutions in the implementation of identity 
management, authentication processes and census: identity card programs, immigration and border control, welfare 
and social benefit distribution programs, civil and voter registration. With SIMS, reliable people registration, 
authentication and census projects are carried out in record time. 

SIMS cutting-edge technology is flexible and can be adapted to medium and large scale projects guaranteeing data 
accuracy and security. It also minimizes the chances of irregularities, efficiently stores each person's record, 
simplifies the registration process, reduces costs in training and deployment and provides a quick method for personal 
data capture and document printing. 

Main Business Applications: Voter registration; Voter authentication; National identification programs; Civil 
registration; Border control (ports and airports); Identity document production and issuance; Registration for social 
benefit programs; Population censuses. 




IV. Smartmatic Structure Overview 

4.1 Investors 

The Board of Directors of the subsidiaries of the Smartmatic Group is comprised by Antonio Mugica Rivero (CEO), 
Roger Pinate (COO), Jorge Massa, and professional local directors depending on each specific subsidiary. 

The owners of Smartmatic, since its foundation in 2000, have been the Mugica, Pinate, Anzola and Massa families, 
holding approximately 88%+ of Smartmatic's stock; 10% of the remaining stock correspond to the Stock Incentive 
Program for employees who have become shareholders; and 2% + of the stock is held by angel investors. 

4.2 Officers and Executives 

Antonio Mugica 

Chief Executive Officer 

Electronic Engineering, Simon Bolivar University. Mugica was previously the Director of 
Panagroup Corporation. He created Smartmatic's vision and holds over nine pending 
patents under his name in the United States of America. 

Roger Pinate 

Chief Operating Officer 

Electronic Engineering, Simon Bolivar University. Responsible for the creation and 
supervision of Smartmatic's production strategy and industrial design processes. 

Armando Yanes 

Chief Financial Officer 

Master in Business Administration, University of Tampa (Florida, USA) and Economist from the 
Catholic University of Argentine. Over 32 years of international experience in finance and 
strategic planning with Verizon (successor of GTE). Yanes held the senior positions of CFO & 
SVP in CANTV (Venezuela 2000 - 2007), and of CFO & SVP in China (1 995-2000). Before, he 
held positions of increasing responsibilities in Argentina, Chile, Colombia and United States. 

Robert Cook 

Senior VP International Sales 

Business Administration, Wittenberg University. He was President of Unisys Corporation's 
Latin America and Caribbean Division, in addition to serving variously as President of Unisys 
Brazil, Unisys Mexico and Vice-President of Marketing Operations for Asia/Pacific and the 
Americas. Cook has over 36 years of experience in the areas of technology, finance, sales, and 
general management. 

Edgar Zorrilla 

Advisor to the CEO 

Mr. Zorrilla holds a bachelor in Computer Science and a post graduate degree in Business 
Administration from Universidad Central de Venezuela. Prior to joining Smartmatic, he was 
Vice President of Latin America Division for Internet Security Systems ISS; Consulting 
Practice Director for Network Integration and Information Security Practice Director in the 
Latin America Division of Unisys Corporation. 

Keith Stringfellow 

President Smartmatic US 

Business Administration, W. Texas ASM University. Most recently he was Vicepresident of 
Capgemini's Eastern region Business Management Practice and previously was President and CEO 
of Previstar, an emergency management and command and control software company serving US 
government and military. General Manager of Unisys, North America. Stringfellow has 36 years 
experience in the areas of business and management consulting, technology, product development 
and management, systems integration, outsourcing, sales and general management. 




Ramon Ramirez 

VP International Sales 

Electronic Engineer, Simon Bolivar University (Caracas, Venezuela), enrolled in the 
Management Development Program for Senior Executives in Lausanne, Switzerland. 
Ramirez has more than 30 years of experience, especially in the Telecommunications area 
in multinational companies such as Cantv, Movilnet, Caveguias, Siemens, among others. 


Jorge M. Vdsquez 

VP External Operations 

Computing Engineer, Simon Bolivar University. Over 25 years of experience in technology, 
information systems, business management, product design Si management, procurement & 
manufacturing, technology-to-market business. Mr. Vasquez was the Product Business 
Director for Acer Latin America for several years, nowadays is a Senior Manager with a 
long experience working with an extensive chain of providers around the world, and 
servicing customers in USA, Latin America and Asian markets. 


Eduardo Correia 

VP Program Management 

Computing Engineer, Simon Bolivar University. Co-designer of the Smartmatic Automated 
Election System (SAES) and the business management system Real-time Enterprise Suite. 
Within Smartmatic, his responsibility is to guarantee the application of the device networking 
vision in every company development, following cutting-edge practices on the market. 

Victor Ramirez 

VP International HR 

Industrial Relations, Andres Bello Catholic University. At Smartmatic, Mr. Ramirez is 
responsible for definition and execution of human resources strategy; including the develop- 
ment and implementation of HR subsystems and policies within the global Organization. Prior 
to joining Smartmatic, he worked for Novartis Venezuela as C&B Manager for Andean Region 
and Compensation- HR Administration Manager, at Panagroup as Project Consultant and at 
Easy Survey Corporation (Current Mercer) as Consultant. 

Cesar Manduca 

Director SFS 

Bachelor of Science in Business Administration from Metropolitan University (Caracas, 
Venezuela) and MBA from Yale University (New Haven, USA). Manduca counts with more 
than 1 2 years of experience in investment banking, in such important organizations as the 
Deutsche Bank AG in London and Citibank in Venezuela. 

Chandler Molina 

General Counsel 

Attorney from Central University of Venezuela, with studies in Civil Procedure and Taxation, 
Master in Comparative Jurisprudence from New York University (USA) and Advanced 
Management Program from IESA School of Management (Caracas, Venezuela). Molina has 
worked in the legal departments of important companies such as PDVSA, CANTV and 
Movilnet through 1 8 years. 

Carolina Caruso 

International Business 

Attorney from the Andres Bello Catholic University (Caracas, Venezuela), to which she adde 
a Fiscal Planning Management Program in Metropolitan University (Caracas, Venezuela). In 
Smartmatic, Caruso has led the legal and tax structure for the International Business 
Company. Previously, Caruso worked in an important law firm where she focused on 
corporate and tax legislation and regulations. 



L? & 

4.3 International Presence 

Naritaweg 165Telestone8, 1043 BW Amsterdam. The Netherlands 
Phone: +31(0)20 5722 461 


# 4 Stafford House, Garrison, St Michael 

Barbados, W.I. BB 14038. 

Phone: +24 (6) 2280756 / Fax +24 (6) 2287734 

Smartmatic Venezuela 

Av. Francisco Solano, Torre Banvenez, Piso 16 

Sabana Grande, 1 050. Caracas, Venezuela. 

Phone: +58 (212) 7062500/ Fax: +58 (212) 7629353 

Smartmatic United States of America 

1001 Broken Sound Parkway, Suite D. 

Boca Raton FL 33487, USA. 

Phone: +1 (561)8620747/ Fax: +1(561)8620749 

I Global Contact Europe 

Paseo de La Casteliana, 141 -8a Planta 

Madrid, 28046. Spain. 

Phone: +34 (91 ) 5726533 / Fax: +34 (91 ) 5726621 

Global Contact Asia/ Philippines 

c/o MULTICO, 7th Floor, Corinthian Plaza 

1 21 Paseo de Roxas. 1 226 Makati City. Philippines. 

Phone: +60(12)2330078 

3F, No. 1, Lane 538, Chung Chen Road 

Hsin Tien, Taipei, Taiwan (R.O.C.) 

Phone: +88 (62)22188082/ Fax: +88(62)22188765 

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